German RWE buys Con Edison’s renewable portfolio for $6.8 billion

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BERLIN — Germany’s biggest power producer RWE said on Saturday it would buy Con Edison’s Clean Energy Businesses subsidiary in a deal valuing the unit at $6.8 billion.

RWE said the acquisition would add about $600 million in earnings before interest, tax, depreciation and amortization (EBITDA) to its annual results.

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It would also double RWE’s renewable energy portfolio in the United States to over 7 gigawatts of operating assets and increase its pipeline of projects to over 24 GW of onshore wind, solar and batteries.

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RWE said the deal, which would bring the number of renewable energy experts it has in the United States to 1,400, would make it the fourth-largest renewable energy company in the United States and its second-largest solar operator.

“The acquisition of Con Edison Clean Energy Businesses is a major boost for RWE’s green expansion into the United States, one of the most attractive and fastest growing markets for renewable energy,” said said RWE chief executive Markus Krebber.

RWE said the transaction would be financed by issuing a mandatory convertible bond of 2.4 billion euros ($2.35 billion) to a subsidiary of the Qatar Investment Authority.

This would eventually turn into shares representing just under 10% of RWE’s share capital. Its plans for a dividend of 0.90 euros per share remained unchanged, RWE added. ($1 = 1.0205 euros) (Reporting by Thomas Escritt; Editing by Alexander Smith and Jonathan Oatis)